GoGold Resources (GGD) - Sensible Gold Investors Should Spot Exciting Business Models

If this is the best thing this successful CEO has seen in his entire career, it's probably time to pay attention...

GoGold is a really encouraging gold mining and tailings story. It is a Canadian-based silver & gold producer with 2 projects in Mexico: the 22,000ha, 35-concession 'Los Ricos' exploration project, and the Parral Tailings operation, a heap leach facility that processes historical tailings and produces silver at a low cost: 600,000oz silver equivalent at an AISC of just over US$14/oz. The management team has an exemplary track record. The most exciting element of this story to me though is the indications coming out of the Northern end of Los Ricos South, and the drilling planned at a potentially even better targets at Los Ricos North. It looks like Los Ricos North could match or even exceed the already extremely solid figures from Los Ricos South.

Matthew Gordon talks to Bradley Langille, 13th July 2020

GoGold has recently intersected 11m of 424g/t silver equivalent and 18.4m of 889g/t silver equivalent, including 3.2m of 4,335g/t, in the Rascadero area of Los Ricos South (the Northern end). They are now approaching a data cut off point for the district-scale, 35km land package after 16-months and c.US$6M of drilling with up to 6 drill rigs. 4 rigs are currently operating in Los Ricos South and the company has now started drilling at Los Ricos North. The +200 drill holes will be given as a data package to the third-party independent consultant, as investors eagerly anticipate the summation of defined ounces: GoGold's long-awaited Maiden Resource, followed quickly by a PEA. Is this a potential catalyst moment? Langille is adamant that while this might be the current cut-off point for data, this is by no means the end of drilling. There are still plenty of interesting anomalies that are exciting the team.

Langille is certain that he has the team to turn Los Ricos into a fully operational, highly profitable gold mine. They have done it before several times. The team has already built 3 large mines in the past and made shareholders money. The company appears to have all the expertise it needs to develop this project astutely. It's going to be a solid 2.5-3g/t AuEq bulk tonnage mine.

GoGold starting drilling at Los Ricos North at the start of June, and data from 'twin' historical drill holes completed by Tumi Resources and National Lead have thrown up some compelling stats. GoGold has started with one drill rig at the La Trini target, and the company intends to utilise HQ triple tube core drilling equipment to maximize core recoveries at shallow depths. From experience, the management team feels there is at least as much potential at Los Ricos North as in Los Ricos South. In fact, the company believes there is actually a lot more promise, based on the history of the district. Thanks to its well-received financing in March, GoGold raised C$25M. Based on the most recently released financials, the company has c. US$19M in the treasury with a low burn rate because of the cash flow from operating mine, Parral, generating almost US$2M per quarter after G&A. GoGold now appears poised to really accelerate the drill program.

Langille is adamant that GoGold is not making the common mistake, seen from many junior mining companies, of biting off more than it can chew. He insists the company remains focussed, despite this new direction of exploration. If the company is really onto something large here and it is the best thing Langille has seen in 20-years he says, so I'm not going to question anything just yet.

GoGold is in the process of increasing its US$5M drill budget, aiming to spend up to US$10M on Los Ricos North. Some really high-grades are coming up now, and the focus is on drilling c. 15 structures beneath the headframe (the previous mine). We'll be following this story closely because this feels like $650M SilverCrest 12-months ago.

What did you make of Bradley Langille and GoGold Resources?

Company Website: https://gogoldresources.com/